The audit, led by Democratic Party Representative Jeon Jin-suk during the Health and Welfare Committee session on Oct. 20, brought to light a stark systemic failure: hospitals meeting government performance benchmarks are simultaneously sinking deeper into financial distress. Across all 35 regional public medical institutions nationwide, the cumulative annual deficit reached 452.4 billion won. Representative Jeon questioned the validity of evaluation metrics that assign top ratings to facilities failing to balance their budgets, arguing that the persistent shortfalls extend far beyond individual management failures.
The financial strain directly impacts clinical operations and healthcare labor pools. Seventeen of the 35 institutions reported delayed payments lasting three months or longer by 2025, totaling 32.0 billion won in unpaid obligations. Among the A-graded facilities alone, seven hospitals accounted for 14.625 billion won in long-term delayed payments. Five medical centers experienced unpaid wages and allowances totaling 7.9 billion won, while seven institutions borrowed 40.3 billion won in operational funds simply to stay afloat.
Clinical and Operational Impact on Local Patient Access
The liquidity crisis translates directly into compromised patient care infrastructure. Unpaid balances affect pharmaceutical suppliers and hospital staff alike, creating severe vulnerabilities in regional healthcare delivery networks.
President Kim noted that bed occupancy rates across the 35 regional medical centers remain stagnant at roughly 80 percent of pre-pandemic levels, drastically reducing operational revenue. Citing the specific case of Seosan Medical Center, Kim confirmed that despite earning an A grade on the regional base public hospital evaluation, the facility absorbed a deficit approaching 5.0 billion won over the past year. Administrators emphasize that overlapping and rigid evaluation frameworks—encompassing general management, essential medical services, and fiscal metrics—fail to reflect the actual operational realities of running public health safety nets.
Financial Breakdown of A-Grade Regional Medical Centers
Lawmakers and medical officials called for a comprehensive review that integrates operational evaluations, essential medical competency metrics, financial standing, and non-benefit income levels to establish sustainable public deficit subsidization frameworks.
References
- National Assembly Health and Welfare Committee Audit Proceedings. Republic of Korea.
- Regional Base Public Hospital Operation Evaluation Reports. Ministry of Health and Welfare. 2025.
